June 2022 Housing Market – Downtown San Diego Condo Market

Downtown San Diego’s market is beginning to loosen up a bit and I think we will begin to see inventory grow. I am not saying that it is a buyer’s market, as it is still extremely competitive. I do, however, think that the buyer frenzy is slowing down and the number of listings for sale will begin to rise. One indicator I watch to predict what the market is doing is I watch how many properties went into contract (pending), which declined in May. If we compare it to May of 2021, we saw -27.4% less options go into contract. This is also following the same pattern we are seeing throughout the rest of San Diego County (-25.5% from May 2021).

We are currently still facing extremely low inventory in Downtown San Diego. There are currently only 72 options in Downtown if you exclude the Hard Rock’s hotel condos (there are currently 16 listings in The Hard Rock Hotel). Downtown typically hovers around 250-300 available listings. This shortage has pushed prices up quickly and led to bidding wars on most listings.

If you are a buyer, there is light at the end of the tunnel. I can feel a shift happening in the market. Let’s be clear, shift doesn’t necessarily mean a crash. As mentioned previously, I think inventory will begin to rise back up to normalized levels for Downtown San Diego. In my professional opinion, there will be more options to chose from and average days on market will return to 30-45 days. Well positioned homes will still move quickly, but homes that are over priced or do not show well, will sit on the market.

Downtown San Diego has some very large commercial projects that are currently underway. These projects will be adding high paying jobs in sectors such as tech and bio tech. As of today, there aren’t any “for sale” or condominium projects on the horizon. While residential developers, such as Bosa, do own parcels in Downtown San Diego, there haven’t been any released construction plans. My best guess is that, while I think inventory will grow, the lack of new construction will continue to keep inventory at relatively low levels.

Each year, I compile the numbers for each individual building and I compare the stats. Click here to see the list of Downtown San Diego building stats for 2021.

And Always Remember, It Matters Who You Work With!

Give me a call today at (619) 228-6790 or email me at Ryan@www.livingthesandiegolife.com for more information or to schedule a tour of the neighborhood!